September 18, 2023
By Anjali Kochhar
The CEO of Binance.US, Brian Shroder, has stepped down from the crypto trading platform. Norman Reed, the Chief Legal Officer, will take on the role temporarily. This move follows a decision by the platform to let go of over 100 employees, which amounts to about one third of its workforce. The company, officially known as BAM Trading Services, was established in 2019 to cater to users in the United States, who are not allowed to use Binance Holdings.
This marks the second round of job cuts for the Miami-based firm this year. It is grappling with a range of legal and operational challenges. Back in June, the US Securities and Exchange Commission (SEC) accused Binance Holdings, along with Zhao and Binance.US, of mishandling customer funds, providing misleading information to investors and regulators, and violating securities rules. Both Zhao and the companies have refuted these allegations.
In March, the US Commodity Futures Trading Commission also charged Binance and Zhao with “wilful evasion of federal law.” The Justice Department is conducting an inquiry into Binance, but has not accused the company of any wrongdoing.
Following the SEC’s action, customers of Binance.US faced difficulties in depositing or withdrawing dollars, as several banking partners cut ties with the platform. The company had to find an alternative method for its users to convert dollars into crypto.
Binance.US’s share of the global market has dwindled from about 2.39 per cent in April to approximately 0.6 per cent, reports Jacob Joseph, an analyst at researcher CCData. Monthly trading volume has fallen below levels seen in early 2020.
A spokesperson from Binance.US emphasised, “The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange.” They also expressed concern about the SEC’s efforts, stating that it affects American jobs and innovation.
Earlier, Binance.US had already let go of an undisclosed number of workers following the SEC’s action, as reported by Bloomberg in June. Binance Holdings has also seen a departure of executives and employees in recent months. This includes the exit of two executives overseeing regions like Eastern Europe and Russia this month. In August, Binance lost its head for the Asia-Pacific region, and in July, several executives, including the Chief Strategy Officer, departed.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
